Formica will take the position in November with David Jacob becoming chief investment officer.
His decision comes as Henderson posted an operating profit before tax and non-recurring items of £50.8m, a fall of 16 per cent from the £60.5m return for the first half of 2007.
After non-recurring items the group’s profits was slashed by 54 per cent from £101m to £47m.
Henderson Global Investors has revealed operating profit before tax fell from £61.4m at for the first half of 2007 to £60.6m for 2008, a loss of 1.3 per cent.
The firm also saw a 14 per cent loss in assets under management in the past 12 months from £61.6bn at 30 June 2007 to £52.6bn on June 2008.
Yates says that despite hostile conditions in the first half of 2008, the group is pleased with progress it has made, particularly as earnings per share increased by 12 per cent following a special dividend being paid to shareholders in October 2007 and prudent gearing of the balance sheet in May 2008.
He says: “Assuming markets do not fall materially from here, Henderson is still aiming to meet or beat its pre-tax operating profit from last year of £109.6 million and achieve an expense ratio of below 65 per cent in 2008. This is facilitated by the prompt action we took on costs earlier this year, together with further net fund inflows into our Institutional business and some of our higher margin products.”
Henderson has also confirmed plans to relocate its business offshore with a new holding company to be incorporated in Jersey and tax residence in the Republic of Ireland.
Yates adds: “As our business becomes increasingly global, we have concluded that the Group and its shareholders would be better served by having an international holding company with a group structure that is designed to help protect the Group’s taxation position and better facilitate its financial management.”
Speaking of Yates decision to step down, Henderson chairman Rupert Pennant-Rea says: “Roger has built Henderson into a strong and successful independent fund management business since the demerger from AMP in 2003. The Board is sorry to see him go, but we wish him well for the future.
“We are appointing a strong successor in Andrew Formica, who has been with the Group in its various guises since 1998. He is an experienced fund manager, with proven skills as a leader. Andrew and Roger have worked closely together over the years, particularly in the last four years when Andrew joined the Senior Management Team and we expect a seamless transition. We are confident that he will take the Group from strength to strength.”